Dubai-listed Islamic insurer Salama confirms merger plans with Takaful Emarat

Dubai-listed Islamic insurer Salama confirms merger plans with Takaful Emarat

Islamic insurer SALAMA has confirmed that it has obtained initial regulatory approval for a merger with Takaful Emarat and that it also in negotiations to acquire a stake in a third insurer, Aman.

The moves will elevate Salama to become one of the world’s top five largest Islamic insurers, the company said in a statement to Dubai Financial Market (DFM) today.

The DFM statement confirmed media reports yesterday (Sunday) and said Salama is working to fulfil legal and regulatory requirements as well as Securities & Commodity Authority (SCA) approval.

“The merger between Salama and Takaful Emarat is anticipated to be a non-cash transaction via the issuance of additional shares by Salama to Takaful Emarat shareholders to consummate the merger,” the statement said.

“The transaction is expected to be complementary and accretive to the shareholders. Salama expects significant merger synergies upon completion.”

The statement added: “Salama is currently the largest Takaful company in UAE. Upon completion of these transactions, Salama expects to extend its market-leading position in UAE and is expected to become one of the top five largest takaful companies in the world.”

In August, Takaful Emarat reported a loss of AED 5.88 million ($1.6 million) in its second quarter financial results, with auditor EY saying